Premiums to soar after pair of fires

Premiums to soar after pair of fires | Insurance Business

Premiums to soar after pair of fires
Premiums for waste recycling facilities could be set to soar following a pair of fires in New South Wales and Victoria, an expert broker has said.

The pair of blazes, one at the SUEZ Chullora Resource Recovery Park in south-west Sydney, the other at the SKM recycling plant in Coolaroo, Victoria, have seen the sector hit the headlines over the last month.

The two fires will see the sector pay more for their insurance, according to Russell Boucher of Arthur J. Gallagher Insurance Brokers.

“Business owners should be prepared to pay significantly more for their property insurance, or take up a higher excess, on the back of these incidents,” Boucher said.

Want the latest insurance industry news first? Sign up for our completely free newsletter service now.

“That’s a further reason to ensure waste recycling facilities have the very best plans in place to reduce their risks. Businesses that can demonstrate they have robust risk mitigation processes in place will see this reflected in their premiums.”

Boucher noted that fire risk is nothing new for waste recycling centres as they often contain a high level of flammable material.

The cause of both fires remains officially unknown, but the Victoria fire is currently being attributed to a fault in machinery.

Boucher urged other similar business owners to use the pair of fires as a reminder to check machinery and utilise other mitigation techniques to avoid similar dangers.

“It’s vital that all waste and recycling facilities ensure their machinery is regularly maintained by qualified technicians. That will help minimise a range of risks, ensuring your business and staff are as protected as possible.”

Related stories:
QBE combats rising car theft using telematics
Industry body defends high premiums in the Far North